Canadian banks see loan-loss reserves diverge
Provisions rise at Scotiabank and BMO; drop off at TD Bank, CIBC and RBC
Loan-loss provisions piled up at two of the ‘Big Five’ Canadian banks and dropped off at the other three over the three months to end-April.
Bank of Montreal and Scotiabank posted higher provisions for credit losses than the prior quarter, up C$39 million ($29 million), or 28%, and C$185 million (27%), respectively, to C$176 million and C$873 million. Their PCL ratios – calculated as total provisions divided by average impaired loans – stood at 0.14% and 0.49%, respectively.
In contrast, TD
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